Asset management company Motilal Oswal Mutual Fund on Tuesday announced that it will allow lump sum investments with a cap on three international schemes - S&P 500 Index Fund, Nasdaq 100 Fund of Fund and MSCI EAFE Top 100 Select Index Fund.
With effect from 1 December, Motilal Oswal AMC will accept up to 2 lakh, per PAN, per calendar month in each of these schemes by way of either lumpsum or switch-in applications.
Motilal Oswal AMC will continue with the restriction on systematic investment options such as SIP and STP, etc.
Motilal Oswal S&P 500 Index Fund invests in the constituents of the US-based S&P 500 index, while Motilal Oswal Nasdaq 100 Fund of Fund invests in stocks of Nasdaq 100 index.
Motilal Oswal MSCI EAFE Top 100 Select Index Fund invests in stocks from Europe, Australasia and Far East (EAFE).
Earlier this year in February, the Securities and Exchange Board of India (Sebi) had advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits.
The regulator has specified an overall industry level limit of $7 billion for mutual funds to invest in overseas securities and funds and a separate limit of $1 billion for invest in overseas ETFs.
Further, the Association of Mutual Funds in India (Amfi) in June notified that mutual fund schemes may resume subscriptions and make investments in overseas funds /securities up to the headroom available without breaching the overseas investment limits as on 1 February 2022.
The fund house in recent past had opened some of its overseas schemes for large investors and market makers due to availability in headroom for investments.
Last month, the fund house had opened up the creation of its two overseas exchange-traded funds (ETFs)--Motilal Oswal Nasdaq 100 ETF and Motilal Oswal Nasdaq Q 50 ETF--directly with the fund for large investors.
Large investors deal in ‘creation unit size’ other than authorized participants and market makers who create or redeemed directly with the fund or AMC.
